For all investors, the faster any conflict in any region is resolved, the better. The longer a conflict drags on, the greater the uncertainty in the investment market becomes, leading to significant financial uncertainty. Currently, with no end in sight in the Russia-Ukraine conflict, and the US-Iran war seemingly on the verge of further prolongation, some gold investors may gradually no longer need to liquidate their gold holdings to mitigate related risks. This is because such situations have become commonplace, and concerns about a larger-scale conflict triggered by the Iranian situation may diminish over time. The biggest concern for the investment market regarding the Iranian situation is whether oil prices will resume their upward trajectory. If US crude oil prices remain below $75 per barrel in the short term, investor concerns about the Federal Reserve’s aggressive interest rate hikes to curb inflation are unlikely to rise significantly, potentially encouraging investors to take on the risk of buying gold at lower prices.

A position can be established around $4,063, with a short-term target of $4,180 for profit-taking, and a stop-loss at $4,043.

Gold Price 1-Hour Chart:

Ferris Kwok

Chief Analyst
Success Finance Group

Email: ferris.kwok@successfn.com